Description of this paper

The demand curve is given

Description

solution


Question

The demand curve is given by;Qd =500 -5Px + 0.5I +10Py 2Pz;Where;Qd = qusntity demanded of good X;Px = price of good X;I = consumer income, in thousands;Py = price of good Y;Pz = price of good Z;a. Based on the demand curve above, is X a normal or an inferior good?;b. Based on the demand curve above, what is the relationship between good X and good;Y?;c. Based on the demand curve above, what is the relationship between good X and good;Z?;d. What is the equation of the demand curve if consumer incomes are $30,000, the price of;good Y is $10, and the price of good Z is $20?;e. Graph the demand curve that you found in (d), showing intercepts and slope.;f.;If the price of good X is $15, what is the quantity demanded? Show this point on your;demand curve.;g. Now suppose the price of good Y rises to $15. Graph the new demand curve.

 

Paper#28778 | Written in 18-Jul-2015

Price : $22
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